Mexico Publishes Modifications to the Third Fiscal Miscellaneous Resolution for 2016

Llega la 3ª RMF para 2016: Novedad del complemento de pagos

Last July 13th, Mexico’s tax administration published modifications to the third miscellaneous fiscal resolution for 2016 along with its annexes on its website. The planned changes will become effective for taxpayers on August 15th ,although there are some exceptions. The supplement for payments will be mandatory 30 days after the tax administration has made it public.

Among all of the modifications, this new supplement is one of the most important and affects a large number of businesses and taxpayers. In the legislation, Mexico’s tax administration includes different situations for optional or mandatory use for payments made in relation to online digital invoices.

  • Operation of payments in installments. Once the supplement for payments becomes active, it will be mandatory for all operations paid in installments. Companies will have to issue an electronic invoice for the total value of a transaction at the time it’s made. Then it must issue an online digital invoice for each payment made. To do this, it will be necessary to use the supplement for payments and the total amount of the operation in pesos.
  •  One installment payments, including credit transactions. In this case, using the supplement for payments is optional. However, those wishing to use the supplement may do so when a taxpayer makes one installment payment and when the electronic invoice is issued.
  • Invoice protection. The supplement will limit the cancellation of electronic invoices since it’s evidence that the payment has been made fully or partially. If a correction is necessary, companies will have to issue a credit note that indicates the error. This way the new supplement will provide greater legal security to fiscal transactions, although this use is also optional.

 

What information will the supplement for payments contain?

The tax administration is currently working on the payment supplement, a process in which EDICOM, a company that provides certification services for online digital invoicing along with other groups in the sector, participated in. When it’s ready, the supplement will be published on the tax administration’s website. Although there may be some small modifications, the most foreseeable modifications is that online digital invoices will include the following fields:

  • Date of payment
  • Form of payment
  • Currency
  • Field type
  • Amount
  • Operation number
  • Payer’s name
  • Payer’s RFC account
  • Payer’s account
  • Beneficiary’s name
  • Beneficiary’s RFC account
  • Beneficiary’s account
  • Payment chain type
  • Payment certificate
  • Payment chain
  • Payment stamp
  • Related documents

 

What are the advantages?

The supplement for payments, which includes the third resolution of modifications, comes at a time during which the electronic invoice is making great strides in Mexico. The tax administration addressed update 3.3 of the online digital invoice, which will take effect in 2017, with the objective of correcting some of the errors that have been detected over the past few years and to simplify tax compliance for taxpayers.

These same objectives are being pursued with the creation of the supplement for payments made.  Its implementation will mean advantages in the administrative field for businesses. These are some of the advantages:

  • It will avoid false duplications of payments made by installments.
  • It will prevent excessive cancellation of invoices because some taxpayers have informed the tax administration that some suppliers nullified payment proofs without reporting the cause. This made deductions and tax credits impossible.
  • It will allow one to know whether or not an invoice has been paid. This way, it won’t be possible for clients who haven’t made payments to use the invoice to deduct expenses.
  • It will automate the process of capturing payments, which will minimize the time dedicated to this task while reducing human errors in the process.
  • It will accelerate management processes.

 

Other Foreseen Modifications

Beyond the incorporation of the payment supplement, the third resolution of modifications will cause other changes related to the electronic invoice. In particular, it will modify the requirements of the printed representation of digital online invoices as well as some obligations of certified providers authorized to send digital documents. To learn more about these changes in depth, consult the tax administration’s website.

Mexico Is On A Paperless Conquest




Mexico has become one of the most advanced countries when it comes to applying technology to fiscal and administrative processes. After the widespread growth of using online digital tax receipts and the progress of electronic accounting, two new paperless advances arrived in 2016. One is the modification of NOM 151 and the other is the creation of providers certified to receive digital tax documents.

 

“This new entity facilitates the management of taxpayers and is responsible for validating digital documents, certifying them and sending them in a secure form to the tax administration,” explains Rafael Zanón, marketing director of EDICOM’s branch in Mexico, the first business authorized by Mexico’s tax administration to operate as a provider certified to receive digital documents as well as the first provider authorized to send digital documents since 2009. Providers certified to receive digital documents will assume the electronic processing of various tax documents such as value added tax documents. The main difference with providers certified to receive digital documents is the obligation of applying validations, which is essential for issuing online digital tax receipts, not just syntactically as is done in the schema of electronic invoicing, but also semantically in such a way that guarantees the quality of data declared to the tax administration.

 

Another big jump in technology that began at the beginning of this year is the modification of the official Mexican standard 151 also known as NOM151, which is in the final stage of the legislative process. According to Javier Romero, EDICOM’s B2G project specialist, “the new regulation represents a major digital leap for Mexico.” Furthermore, the government has included some conservation requirements in it that will ensure the reliability of electronic documents even in the face of technological advances.

 

Also after NOM 151 is updated, all the documents digitalized and stored according to the regulation’s established conditions will have the same legal value as paper, so it will no longer be necessary to keep the originals. “Soon, the country’s businesses will be able to utilize fully digital processes that will save time as well as storage costs,” says Zanón.

 

The digitalization process in all areas of Mexican society is unstoppable and continues. Purchases, logistics, accounting, taxation and practically all the areas of a business are affected by the need or the obligation to perform electronic processes. For this reason, a partner like EDICOM that is experienced and accredited in developing electronic data solutions is essential for companies that want to transition easily as this digital transformation sweeps over the country.

 

About EDICOM

EDICOM is a multinational company specializing in electronic invoicing and electronic data interchange with offices in eight countries. In Mexico, it was the first provider certified to receive and send digital tax documents and it’s also a provider of certification services. In addition, the company has more than 20 years of experience in this sector and more than 14,000 customers for whom it manages B2B and B2G data integration projects in more than 65 countries.

EDICOM Authorized by Mexico’s Tax Administration As the First Certified Provider For Receiving Digital Documents

EDICOM has been authorized by Mexico’s tax administration (SAT) as the first provider certified to receive digital documents (PCRDD) after a rigorous process of technological and fiscal auditing. Additionally, EDICOM was the first provider authorized to issue electronic invoices (CFDI) by Mexico’s tax administration in 2010. With this new certification, EDICOM has become one of the main companies in the country to provide fiscal electronic data integration services.

The new designation has already appeared in the Miscellaneous Tax Resolution for 2015 and is about how external suppliers are responsible for validating digital documents, certifying them and securely sending them to the tax administration. One of the differences with being certified to send digital documents is the obligation to comply with syntactic and semantic validations to ensure the quality of data.

 

Why must a provider be certified to receive digital documents (PCRDD)?

The main objective of this new electronic system is to make the service of receiving digital documents more available, to offer the most advanced solutions to businesses and to simplify the management of electronic communication between tax payers and the tax administration which is a tedious process.

This new initiative unifies and simplifies all electronic communication procedures into a single solution that meets the standards of the tax administration. Therefore the service of receiving digital documents becomes more available and gives companies the choice of having more advanced technological solutions that are not only customizable but integrated with their systems.

Another advantage of this system is that it generates an acknowledgement every time a document from a tax payer is received. It will also show the status of the validation process, an ID number, and a digital seal as well as other complementary data. This system enables companies to receive precise data and exercise better control over that data.

 

What documents are validated?

Currently, the system for receiving digital documents validates declarations from VAT providers. However, Mexico’s tax administrations plans to add other tax services and documents such as electronic accounting, annual statements, interim payments and DeclaraNot, an electronic program used by notaries to present information about monthly operations.

 

The perfect provider

EDICOM is a global provider of electronic data interchange solutions, electronic invoicing and other digital transactions that align with the fiscal requirements of each country. Not only has EDICOM been authorized as the first provider certified to receive and send digital documents in Mexico, but it’s also a leader in the development of software that optimizes communications in the B2B sector.

Get more information about our PCRDD Service

Tax obligations in Mexico 2015

Obligaciones fiscales para México

Mexico is advancing towards construction of an increasingly electronic society. Most accounting procedures are already carried out digitally, enabling users to save time, cut business costs and improve fiscal control. This has made the North American country a benchmark for other neighbouring countries and even Europe and Asia. Nevertheless, there is still a long way to go.

In 2015, the Tax Administration Service (SAT) has established new tax obligations, which will also be transacted electronically and added to the breakthroughs achieved last year. In general, these are the requirements to be taken into account by companies in order to fully comply with the legislation:

 

Widespread use of CFDI

Since 2014, all Mexican taxpayers are required to use the Digital Tax Receipt via Internet (CFDI) in their business relations, as set forth in Article 29 of the Federation Tax Code. Mexico is currently one of the leading countries worldwide in the rollout of electronic invoicing, with a high penetration level which is gradually increasing.

To issue CFDI, taxpayers must use one of the 79 Authorized Certification Providers, which assume the responsibility for ensuring validity of documents for tax purposes and declaring them to the SAT.

Edicom was the first company to be certified as a PAC in Mexico and has different solutions to fully automate the creation, sending and storage of invoices. This way, companies can cut costs and boost productivity, while fulfilling their tax obligations.

 

Invoice storage in XML

Paper invoices are not valid for the SAT, as they only presuppose the existence of the tax receipt. In other words, taxpayers must store their CFDI in XML format. This way, they can make the appropriate deductions.

EDICOM holds NOM 151 accreditation (electronic notary) to ensure compliance with the preservation and safekeeping requirements for e-invoices. Find out more about this certification here.

 

Electronic payroll

All companies must issue their payrolls using the CFDI schema. This measure, which was introduced in mid-2014, constitutes an economic saving of up to 88% on each document. Now, the process is handled electronically and workers can sign their receipts with no need to leave their workstation, using solutions such as Business Mail Payrolls. This way, they have managed to do away with long queues waiting in line.

Taxpayers must bear in mind that this requirement applies to businesses of all shapes and sizes. Moreover, it is necessary to issue a CFDI for each payment made.

 

Electronic accounting

This is undoubtedly the main new tax feature for entrepreneurs in 2015. As stated by the SAT in a press release, 203,807 taxpayers must begin sending their accounting information from this January. However, corporations and individuals with annual earnings of less than 4 million pesos will have another year’s deadline to start using electronic accounting. In other words, until January 2016.

 

Electronic withholding document

The SAT, through point I.2.7.5 of the Omnibus Tax Ruling for 2014, announces the obligation to issue certificates of retentions (withholdings e-document) for all taxpayers providing online information on tax withholdings and payments.

This is an e-document containing the fiscal information on payments made by the taxpayers, to which the pertinent withholding complement is added in each case. This way, taxpayers must generate a standard XML file with the information required for each item subject to withholding of taxes set forth in the catalogue of withholdings published by the SAT.

Prior to submission to the SAT, each invoice must be submitted to an Authorized PAC for incorporation of the digital tax stamp that certifies it.

Businesses and taxpayers may issue the e-document with their retentions on an annual basis by the 31 January 2015 deadline for the issuing of withholdings pertaining to tax year 2014.

Find out more more about this tax requirement.

E-billing growing exponentially in Mexico

CFDI MEXICO

Mexican taxpayers sent more than 2.4 billion electronic invoices in the first 6 months of the year. These figures from the Tax Administration Service (SAT) confirm the spread of Digital Invoicing via Internet (CFDI) scheduled for this year 2014. The main reason for this exponential growth is the implementation of legislative measures from the beginning of the year making it mandatory for physical and legal persons to use the so-called CFDI.

The study E-Invoicing/E-Billing: International Market Overview & Forecast published in February by Billentis consulting already highlighted Mexico as undisputed leader in e-billing worldwide. Indeed, this North American country showed the highest growth rates in 2013.

The figures presented now by the SAT, 2400 million electronic invoices, contrast with those of just a few years ago. For example, in 2011 Mexican taxpayers generated no more than 119 million electronic invoices. In fact, the number of CFDI sent in these first 6 months of 2014 already represents 21 % of all electronic invoices generated in the last 10 years, since this new system was rolled out in the country.

Mexico was one of the pioneers in the compulsory introduction of e-invoicing. With the 2nd Resolution of Amendments to the Omnibus Tax Ruling for 2013, the SAT announced that all taxpayers billing more than 250,000 pesos a year should migrate to CFDI before January 1, 2014, although a three-month extension was subsequently agreed.

Electronic invoicing has helped improve the fight against tax evasion in Mexico, but has also entailed a great number of benefits for taxpayers. With the automation of procedures and the use of electronic means to replace paper, Mexican companies have gained both in savings and productivity.

 

EDICOM, first PAC in Mexico

Edicom is the first PAC in Mexico authorized by the SAT. Our electronic invoicing solutions are designed to meet all legal requirements, while enabling users to take full advantage of the CFDI. In addition, we are endorsed by certificates such as ISO, SOX and NOM151 (electronic notary).